Quiz Ia1 Chapter 5 Notes Receivable
Quiz Ia1 Chapter 5 Notes Receivable
Quiz Ia1 Chapter 5 Notes Receivable
3,380,102
a. the value now of a future amount. d. 1,594,388
b. the amount that must be invested now to produce a known future value. 12. How much is the carrying amount of the receivable on December 31, 20x2?
c. always smaller than the future value. a. 4,803,663
d. all of these. b. 3,380,103
2. Which of the following factors would show the largest value for an interest rate of 12% for six periods? c. 6,074,699
a. Present value of 1 d. 6,000,000
b. Present value of an ordinary annuity of 1
Use the following information for the next three questions:
c. Present value of an annuity due of 1
On January 1, 20x1, ABC Co. sold transportation equipment with a historical cost of ₱12,000,000 and accumulated depreciation
d. Answer cannot be determined
of ₱7,000,000 in exchange for cash of ₱100,000 and a noninterest-bearing note receivable of ₱4,000,000 due in 4 equal
3. A higher interest rate results to
annual installments starting on January 1, 20x1 and every January 1 thereafter. The prevailing rate of interest for this type
a. increased amount of present value. of note is 12%.
b. decreased amount of present value. 13. How much is the interest income in 20x1?
c. same amount of present value. a. 408,230
d. Answer cannot be determined due to insufficient data b. 278,334
4. A shorter period results to c. 328,964
a. increased amount of present value. d. 288,220
14. How much is the carrying amount of the receivable on December 31, 20x1?
b. decreased amount of present value.
a. 1,690,510
c. same amount of present value. b. 892,857
d. shorter accountant. c. 2,690,051
5. The present value of 1 for a period of zero equals d. 1,594,388
a. 1. c. Error! 15. How much is the carrying amount of the receivable on January 1, 20x3?
b. 0. d. Answer depends on the interest rate a. 892,857
6. An entity sells goods either on cash basis or on 6-month installment basis. On January 1, 20x1, goods with cash price b. 3,380,102
of c. 6,074,699
₱50,000 were sold at an installment price of ₱75,000. Which of the following statements is correct? d. 6,000,000
a. Net receivable of ₱75,000 is recognized on the date of sale. Use the following information for the next two questions:
b. Net receivable of ₱50,000 is recognized upon full payment of the total price. On January 1, 20x1, ABC Co. sold machinery with historical cost of ₱3,000,000 and accumulated depreciation of ₱900,000
c. The ₱20,000 difference between the cash price and installment price is recognized as interest income on the date in exchange for a 3-year, ₱2,100,000 noninterest-bearing note receivable due in equal semi-annual payments every July 1
of sale. and December 31 starting on July 1, 20x1. The prevailing rate of interest for this type of note is 10%.
d. Net receivable of ₱50,000 is recognized on the date of sale. 16. How much is the interest income in 20x1?
7. An entity sells goods for ₱150,000 to a customer who was granted a special credit period of 1 year. The entity a. 88,825
normally sells the goods for ₱120,000 with a credit period of one month or with a ₱10,000 discount for outright b. 177,649
c. 128,964
payment in cash. How much is the initial measurement of the receivable if the entity does not use the practical
d. 164,591
expedient allowed under PFRS 15?
17. How much is the carrying amount of the receivable on December 31, 20x1?
a. 150,000
a. 1,241,083
b. 130,000
b. 982,378
c. 120,000
c. 1,690,051
d. 110,000
d. 1,594,388
Use the following information for the next two questions:
18. On January 1, 20x1, ABC Co. sold machinery costing ₱3,000,000 with accumulated depreciation of ₱1,100,000 in
On January 1, 20x1, ABC Co. sold a transportation equipment with a historical cost of ₱1,000,000 and accumulated depreciation
of ₱300,000 in exchange for cash of ₱100,000 and a noninterest-bearing note receivable of ₱800,000 due on January 1, 20x4. exchange for a 3-year, ₱900,000 noninterest-bearing note receivable due as follows:
Date Amount of installment
The prevailing rate of interest for this type of note is 12%.
8. How much is the interest income in 20x1? December 31, 20x1 400,000
a. 68,331 December 31, 20x2 300,000
b. 76,532 December 31, 20x3 200,000
c. 85,714 Total 900,000
d. 96,000 The prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the receivable on
9. How much is the carrying amount of the receivable on December 31, 20x2? December 31, 20x1?
a. 467,354
a. 800,000
b. 438,016
b. 569,424
c. 376,345
c. 637,755
d. 428,346
d. 714,286
Use the following information for the next two questions:
Use the following information for the next three questions:
On January 1, 20x1, Mojo Co. sold transportation equipment with a historical cost of ₱20,000,000 and accumulated depreciation On January 1, 20x1, ABC Co. sold inventory costing ₱1,800,000 with a list price of ₱2,200,000 and a cash price of
of ₱7,000,000 in exchange for cash of ₱500,000 and a noninterest-bearing note receivable of ₱8,000,000 due in 4 equal ₱2,000,000 in exchange for a ₱2,400,000 noninterest-bearing note due on December 31, 20x3.
19. How much is the initial measurement of the receivable?
annual installments starting on December 31, 20x1 and every December 31 thereafter. The prevailing rate of interest for
a. 1,800,000
this type of note is 12%.
b. 2,200,000
10. How much is the interest income in 20x1?
c. 2,000,000
a. 728,946
d. 2,400,000
b. 678,334
20. How much is the carrying amount of the receivable on December 31, 20x1?
c. 728,964
a. 2,125,390
d. 704,236
b. 2,135,341
c. 2,098,343
11. How much is the current portion of the receivable on December 31, 20x1?
d. 2,000,000
a. 1,271,036
b. 1,423,560